UPDATE: Weyerhaeuser Q3 Profit Beats Estimates

Weyerhaeuser Co

reported better-than-expected earnings for the third quarter. The Federal Way, Washington-based company posted a quarterly profit of $1.16 billion, or $2.17 per share, versus a year-ago profit of $167 million, or $0.27 per share. The latest quarter earnings included $966 million from discontinued operations related to the divestiture of Weyerhaeuser Real Estate Company and $9 million from special items. Excluding special items, the company's earnings climbed to $0.33 per share from $0.23 per share. Its sales climbed 3% to $1.92 billion. However, analysts were expecting earnings of $0.30 per share on revenue of $1.97 billion. Revenue in its wood-products division gained 2% to $1.05 billion. Revenue at its timberlands business climbed 3% to $364 million, while revenue at its cellulose-fibers division climbed 6% to $503 million. The company repurchased $130 million of common shares in the quarter. Weyerhaeuser also raised its quarterly dividend by 32%. Doyle Simons, president and chief executive officer said, "Our relentless focus on operational excellence resulted in another very good quarter for earnings and cash flow generation, as we continue to drive sustainable performance improvements in each of our businesses." Weyerhaeuser shares rose 1.39% to close at $33.54 yesterday.